Archive ir35 - ContractingWISE

The Chancellor’s budget announced that off-payroll rules will hit the private sector in 2020. Amidst uncertainty over Brexit, there are widespread concerns that the reforms will damage business and weaken the economy at a critical time. ContractingWise takes an overview of the off-payroll developments to date.…

Mutuality of Obligation or MoO is a feature of employment law that relates to contractual agreements. In the simplest sense, it refers to the obligation of an employer to provide work and pay for it, together with the obligation of the employee to personally do the work.…

Following the invitation by HM Treasury to submit a Budget representation, the Institute of Chartered Accountants in England and Wales (ICAEW) have released their suggestions. In their submission, they state that there should be “no new tax policy initiatives” in the Autumn Budget.…

In the event of an IR35inquiry, HMRC will attempt to establish the true relationship between the contractor and the end client in order to determine employment status. As many contracts are generic, the investigating officer will often place more emphasis on what’s known as the ‘hypothetical contract,’ formed by the impressions they gather about the day-to-day working practices of the contractor while on a given assignment.…

A right of substitution clause states the contractor’s right to send a replacement in their place if they are unable to work on the contract. While having a right of substitution clause in your contract won’t guarantee that you’re outside IR35, it’s part of an important set of factors that can help to prove your self-employed status.…

Introduction:

If you run your business as a limited company, often referred to as a personal service company, then the option of receiving a percentage of your income in the form of the dividends rather than a salary is one which should be seriously considered.…

The Inland Revenue’s 35th press release in 1999 was titled IR35: Countering Avoidance in the Provision of Personal Services. It was released on the same day as the budget statement and continues to exist. The legislation was designed to tax “disguised employment” at a rate similar to employment.…

The prospect of an IR35 investigation is sure to unnerve any contractor whose fees are paid through their own limited company. Even if your tax affairs are entirely in order, dealing with HMRC investigators can be a serious distraction and eat into time you could be spending on clients and although you may be confident that you can prove you are truly self-employed, there may still be a risk that HMRC disagrees and demand ‘unpaid’ taxes and a possible penalty.…

On the back of new changes restricting tax relief on travel and subsistence expenses for temporary workers, independent professionals contracting through their own limited company / PSC are to face a new test to determine whether they are in/out-of-scope of IR35.…